How AI is driving new deal wins and efficiency for Indian IT companies? Explained

Indian IT companies are once again in focus amid the ongoing earnings season. The majority of the mega IT companies have announced their results and fall broadly in line with expectations. The sentiment around IT stocks continues to remain pessimistic after companies posted low single-digit growth rates in the topline. The Q1FY27 earnings season comes at a inflection point for the IT sector after battling with consistent underperformance in recent quarters. Despite muted topline growth and operating margin growth, IT companies have started posting positive developments around artificial intelligence.

Artificial Intelligence has advanced from proof of concept level to become a key revenue engine driver for IT companies. The shift from a traditional software business model to AI-enabled and enterprise solutions remains a common thread across IT majors.

Here are key developments and announcements made by IT companies in Q1FY27.

TCS

Coutry’s largest IT player, Tata Consultancy Services shifted its pole form making experiential AI to large-scale deployment, generating material revenue. The company’s AI services revenue reached annualised run-rate of $2.6 billion growing 13.6% sequentially. Furthermore, company secured $800 million deal with SKF for AI-led business and technology transformation, highlighting growing rate of AI deal wins. Additionally, it also announced partnership with Anthropic AI during the quarter.

Infosys

Infosys’s AI-first framework Topaz has shown increasing contribution to the topline growth in recent quarters. The company disclosed in its earnings presentation that AI-led services contributed 8.2% to the total quarterly revenue in Q1FY27, up from 5.5% in Q3FY26. The company clocked $3.6 billion in deal wins, driven by broad-based enterprise demand in financial services and lifescience segment.

HCL Technologies

The company demonstrated how efficient execution can drive superior growth in the topline. HCL Technology’s AI-led services revenue jumped 62.1% YoY to $171 million, outpacing the overall services revenue by significant margin. The company secured record deal wins during the quarter at $2.4 billion, partly led by AI-driven infrastructure deal worth $1.14 billion and $180 million AI-factory program from global technology giant.

Wipro

Though Wipro posted subdued earnings growth sequentially, the company secured deals from European chemicals company to transform complex application landscape leveraging AI-led capabilities. Additionally, company launched 8 new AI-specific service lines, including token economics advisory, Data Priming, Sovereign AI, Model Ops and Responsible AI.

Mphasis

Mphasis came out as a major winner in the latest quarter as 63% of all new deal wins are linked to AI-led initiatives. Their consolidated revenues jumped 17.5% to ₹4,384 crore outpacing its peers. The growth is primarily led by strong AI adoption, across banking, financial services and Insurance. Additionally, company improved its guidance for FY27 and aims to deliver topline growth in the range of high single digit to low double-digit growth, despite the uncertain macro environment.